====================== Front End Loading means forcing the rep to purchase large amounts of product upfront &/or monthly & then sell it off by retailing like Amway did many years ago before they changed their marketing program. ======================= Actually Robert, that would be an incorrect or very misleading statement when using these two names in the way you did. In the 1979 Landmark decision in the Amway Case the actual opposite of what you are saying was in fact cited in the judges decision as "one" of the factors that went to support the legitimacy of the Amway MLM Business model. In other words when talking about Front End Loading, Amway should be sited as a business where this practice is not practiced.

Hi, I don't know much about Amway except that we were approached about 19 years ago to join in. Was of no interest to my husband or I at the time and still isn't. Sales weren't my thing then but later went on to start a nursery business. But getting back to mlm. I always thought of it as a bad word after looking at all the different opportunities on the internet. I thought why would I want to promote that if I'm not even interested. But then a couple of years ago I heard of a health product that was being sold that way from a friend. And now I am in 3 different health programs. Why? Because I am interested in the product. Anyway you don't have to join them as a business to buy but you do have to register for a customer # if you want the better prices. And one is the company mentioned earlier. So what is wrong with that. I have to register to bid on ebay, register to buy books at Amazon and so on. Martha

There was a study done a few years ago (no I do not remember exectaly who did it). The study found that most if not all MLM type business "sold" over 90 percent of the products to each other or in other words the downline members were holding 90 percent in inventory. That is a very scary number.

Ironically, the whole concept of MLM was originally built on this premise.

Hi, Forumites (Gary's term, but I like it.) It seems I neglected to click 'email me', so I had forgotten about this thread until someone mentioned it in another one. I've been catching up just now on what has gone before me. Thanks to the person who answered Linda's question, since I didn't see it timely. ============================================ The study found that most if not all MLM type business "sold" over 90 percent of the products to each other or in other words the downline members were holding 90 percent in inventory. ============================================ I won't claim to have done a scientific study, but I have been involved in either direct sales or MLM (the main difference in my mind being how the products vs the business are marketed) for over 20 years off and on. In fact, there's an article about it on my website. In my opinion, there has been a shift in the way MLMs operate in the past three to five years. Perhaps it's because companies are now cognizent that they must train their distributors to retail product outside the nest, so to speak, in order to survive an audit of the business model. There are quite a few who are making genuine attempts to construct a pay plan that will reward the casual referrer, i.e., someone who is using the product for himself and retailing some to friends rather than actively trying to recruit downline. David, if you genuinely don't like the business model for yourself, I can understand and respect that. You'll notice I won't try to recruit you or change your mind. But why poison the well for people who want and need solid information about today's MLM climate? Perhaps 'most' is still accurate, but I can attest that 'all' is a grievous exaggeration. Cheri